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tv   Closing Bell With Maria Bartiromo  CNBC  August 17, 2012 4:00pm-5:00pm EDT

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here, almost -- yes we are, four and a half year highs now for the dow jones industrial average and a four year high on the s&p. have a good week, i'll see you on monday. stay tuned for the second hour of "closing bell" now now with maria bartiromo. hi, everybody, welcome back to "closing bell." this is what we're following. the stealth rally goes on. the dow and the s&p finishing higher for the sixth straight week. can the rally roll on? we'll ask stop strategist coming up in the program. then facebook hitting another new low tonight, and minutes before the close, it touches at $19 share mark which is half off. we have a trade to help you cash in on this fallout.
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the dow jones industrial average picking the steam in the last few minutes of trading. it was a very tight trading range all day. we did hold on to the gains at 13275. we had expiration today, so volume was a bit heavier. about 601 million shares here. the nasdaq picking up 14 points and technology a leadership group on the session on the upside. 376 is where the s&p settles out, and the nasdaq up a fraction higher. it is six in a row for the dow and the s&p 500 and five in a row for the nasdaq. can the rally continue into next week. we have ann with us right now, tim leech, stephanie link, and ronan sauna. do you think this has the potential to move further from
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here given what's on the docket? >> i think the reason we rallied this week is we were focused on here and what's goingn here. a whole litany of products. you have lows, dell and h pb, i'm not thinking they're really going to blow it out of the water. they have such a big exposure to pcs. and lowes might do well, but i don't think the news will be as good this week as it was last week. >> i think we need to be careful and invest when people have low expectations. . we had a little bit of a rally. i would like to see things calm
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down a bit before we get excited about buying more. when there was panic and fear headed into the quarters, i thought that was a really good time to put that to work. things are fairly stable, and management is doing a good job managing their business in a rough environment. we're in a slow growth environment and that means have minicycles. we want to make sure we're buying on the declines. >> would you be selling rather into the strength if in fact we are looking at head winds on the horizon? >> we still see upside in many of the stocks that we own. what we're doing is on a relative basis trading the stocks that have gone up more and looking for names trading at discounts and investing in those. >> tim, what are you hearing
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from your clientele looking at the sectors and geographies out there, how do you make the most bang for your buck? >> i appreciate that, maria, i had an opportunity to meet with investors this week and consumer sentiment is very, very cautious. we are seeing confer ration that the u.s. economy is still moving forward, and that's a great point. we're still constructive on the u.s. stock market. we think margins are likely to be maintained. we this the s&p 500 earnings are likely to come in at about $100 which we this is sustainable and we're constructive going forward. >> what does that mean? >> we're maintaining positions, we have a modest overweight position in our port foal you construction at this point, and we're holding tight there. >> ronan, let me ask you about
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the fed in september. i know you're expecting stimulus of some kind, will we see it in september? >> i think the fed has to make a decision to do something and i thought it was coming in august. i think we will have a very clear intention of what he intends to do. i think there is justification for them to do something in concert with the european central bank. china is slowing very rapidly. europe is in recession, and those represent head wins for the u.s. i'm more constructive on the u.s. stock market has i have been for awhile. it's an unloved market and i love unloved markets. >> this market is climbing a wall, right? >> yeah. >> thanks, everybody, appreciate your time tonight, the dow and the s&p 500 up for a sixth week in a row, but facebook is not feeling any love touching $19 a share. that is down, cut in half, from
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the ipo price, of course, you know where that was priced. courtney reagan looks at the continuing fall out now. >> yeah, it's unbelievable. all of our expectations continue to be surprises from where this stock has gone from the initial build up to the ipo. we did touch 19, that's half the ipo price, it looks like just a nickel above, but beyond facebook, there was more going on, believe it or not, despite a very narrow trading range. it is the narrowest that we have seen. it was the small caps that went out. the russell 2,000, and the nasdaq following. crude oil was up almost 4% this week. love $96 for the first time, but oil stocks were down. this is the first time that it fell in a week that crude oil rose more than 3% since february
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of 2011 and last but not least, if we can skip to the last element, i have to show you shares of michael kors up almost 23% in a week. what a outperformer after earnings. >> thank you so much, courtney reagan with the latest there. the state of the jobs market will be a factor in the presidential election. the unemployment rate telling an interesting story. jane wells is breaking down how that is trading. >> i'm in california, and they say the number of job postingings here has not changed, still plugging along. they are expanding in southern california. california is not a swing state in this election, but let's look at 14 states that are. from june to july, 13 of 149 states saw their unemployment rates go up including nevada at 12% in no swing state saw a drop month to month.
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most of these key states have rates that are below the 8.3% for the u.s. as a whole. what about changes from a year ago? that's the opposite. seven states have seen their unemployment rates drop by more than 1% from july 2011 to july 2012. the rest are basically the same as a year ago. we talked to people here looking for work about the economy and the election, my favorite one is from pam. >> when i say i'm hungry and stressed and somebody says economy, or recession, i go you know what? i won't tell you what i tell them, but you make your own breaks. >> she's trying to do that. she says she can type 100 words a minute and make zero mistakes, hire that woman. >> thank you, jane, just what do the numbers mean and how important are they to the presidential election.
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dana, what's your initial reaction here? >> i think you don't want to read too much into the fluctuations from month to month. the larger pick schur that obama has been lucky in that the swing state picture is better for them than it is nationally. if you look at the national numbers all of the models would predict this president has no business being reelected. he should not be the in the running but he is because of the swing state situation and because he has been successful in making this race about other things, about mitt romney's taxes, paul ryan, medicare, and not about the economy. >> how important are these numbers, then? what do you think about the unemployment reports from these swing states? >> the overall numbers, they don't attract as much attention as the individual states as the national number does, and they are subject to a great deal of fluctuations.
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i don't think you want to look month to month, but as is indicated, it is stable, at least. if thaings remain stable, he is in a good position as long as things don't deteriorate there. a lot of battleground states are doing better than the nation as a whole. >> is there a key state to watch? >> nevada is the outliar there, but the states are going to be the ones we're watching all long. ohio in the middle of the pack there in terms of the unemployment rate. florida, i think if you're looking overall, they're solidly below the national average. . >> so is the trend more problematic or just the overall level? >> the trend looks to be flat,
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and if the bottom is not falling out, the thought is he can hold on the way things are looking at this level. if the bottom falls out, that changes. these numbers seem to indicate maybe a little deterioration in some of these states, but a generally stable trend. >> great to have you on the program, thank you so much. we have more for you on this packed tgif edition of "closing bell." back in a moment. coming up, risky business with. one fund manager says he would gladly let john corzine invest his money. plus, crude discussion, the white house considers tapping the strategic oil reserve to ease the current pain at the pump. is this a good economic move? or a presidential campaign stunt? and money matters, paul ryan
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railed against obama's stimulus plan, but took the funds for his district anyway. is this a cagey move? that debate is coming up on "closing bell." store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those. if you want a soft bed you can lie on one of those." we provide the exact individualization that your body needs. welcome to the sleep number store's biggest sale of the year. not just ordinary beds on sale, but the bed that can change your life on sale. the sleep number bed. never tried this before. this is your body there. you can see a little more pressure in the hips. take it up one notch. oh gosh, yes. when you're playing around with that remote, you get that moment where you go, "oh yeah" oh, yeah! ... and it's perfect. right now, every sleep number bed is on sale. queen mattresses now start at just $599. and save an incredible 40% on our silver limited edition bed - but only while supplies last. once you experience it, there's no going back. wow. don't miss the biggest sale of the year on the
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welcome back, investors, brace yourself and your wallet, john corzine is thinking about opening up a hedge fund. we're talking $1.6 billion in client money gone. that was ten months ago, and the question is would you trust him with your money today? we have todd shoneberger that heard this. >> i love the lead in, i like john a great deal, i didn't say i would invest with him because i don't have seeding money, but what i did say is if i had the money to invest, i would look at his hedge fund if he opened one
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because i think we're in a shoot first ask questions later culture with the media, and while mistakes were made there and some of them were clearly made by john, i have known him 25 years and i think it's a competent trader. >> todd, you heard anthony, and he knows him and is vouching for him. >> it's a 25 year relationship, and i have a good idea of the facts of the case. >> good for you, he took down an entire firm, and continued the bruising that wall street is getting. i love that you have a personal relationship with him, that's wonderful, but there is no way you can trust him with any money. we're looking at 50 times leverage. he took down an entire firm. he decimated sentiment and confidence inside what we do on
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wall street. i don't see how you could possibly trust him. and why now? why wouldn't you just hang low for a few years. if he has all of this money he is investing, family money, why do it now? it's like he needs to do it. >> maybe he wants to fix his reputation. >> i don't think he is making plans at this moment. is he trading family money, he probably is. someone wrote a article about that. someone asked me a question and i gave an honest answer. i'm in a majority of one, i don't know if anyone agrees with me, but i have known his for 25 years, you're right, there's a ton of mistakes made all over the streets. some of the large things we all know had to get bailed out. mistakes have been made
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everywhere, but he didn't do anything criminal. i'm looking at the guy that i know for 25 years, someone asks me would i evaluate his hedge fund, i said yes, but we could not give him money because we don't seeding money, but we would look at it. gary kaminsky, i have known him 28 years, and he disagrees and that's fine. if you guys were beating up on gary kaminsky, i would defend the guy because that's the kind of person i am. >> that's great and super you can do that. i think you're the only guy line that wok look at what he has to offer. i'm surprise you're not arms length away from him. why would you associate yourself with this. trust is a factor, data integrity is even more important, and it gets into a
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personal relationship matter. i think everybody would have headed for the hills with this guy. >> i appreciate the nonconventional wisdom and i can't disclose my performance on the year, but look it up and we're doing an exceptional job opinion our clients like us and trust us. i would look at john because i like him, he has good character, and i don't think we should be publicly dunking him. there is a broader issue, we have not seen charges, we have no answer where the money went, that's the kind of stuff that will continue to play into this idea that they're getting the short end of the stick and they
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have no idea how the game works. >> didn't they say a few days ago they expect to find all of the money. >> where? >> what is he going to charge with this? >> that was the quote from the trustee. >> what's he going to charge with the new trust fund? is that how he gets at $1.6 billion. >> i don't think he will even start one. this is was an assumption that was made. again, you would like me to be one of your friends because if someone is making accusations about you that are criminal, not true, i would defend you excite the public rhetoric and the conventional wisdom out there. >> that's great you're friends with him, i think you have to stay away though. >> okay, when the trustee finds the money back, which i expect will happen, can you please invite me back? >> yes, thank you. >> have a great weekend.
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>> we'll see you soon, thanks. up next, touchy subject, the obama administration says it's on the table, should our strategic petroleum reserves be tapped? and then is kond paul ryan a hypocrite? he sought funds for his district after denying it. even though women are bringing home a bigger chunk of the baa kron these da-- bacon these day they're not as financially literate. to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason
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welcome back, since july, gas prices are up by an average 39 cents a gallon. oil prices up in the last two months, these numbers giving renewed attention to the emergency stockpile of crude oil. reports say the obama administration is kicking the tires on releasing some of that poil if prices do not see a post-labor day drop. our next guest things it would be a great idea, but diana says prices becoming uncomfortable does not rise to the level needed to tap the reserve. she's the author of the upcoming book "regulates to disaster."
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congressman welch, you want the reserved tapped, why? >> it's a tool, we want to benefit the economy and national security. there's two reasons, one, with the sanctions on iran and their effort to manipulate oil prices, e want to punish iran, not american families. this is a tool to help us with our success. and second there is a lot of speculation in the market. this is a shot across the bow to the speculators. when president's have done it, the prices have done down immediately by 8 to 33%. that would be a boost and a shot in the arm for consumers. >> but isn't it supposed to be tapped in energy times? are we at an emergency moment that we need more oil on the market? >> i would debate about an
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emergency. >> go ahead, congressman. >> well, i take a flexible definition of that. the speculation in the market that drives up the price, they say it's between $15 and $25 a gallon, and the pressure on the sanctions on iran, why can't we use a tool to benefit the american consumer. >> diana, jump in. >> the strategic petroleum reserve was set up in the case of a disruption in supply. we don't have a disruption in supply. we need to keep this for a real emergency. if the president wants to try lowers gasoline prices, there's several things he could do right away. one is waive the different behind of gasoline required by
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the environmental protection agency. right now they require about 18 different blends. if we could waive that it would go from places where there's a lot to a little and that would lower the price, or waive the ethanol mandate. 10% of the fuel we put in our cars is ethanol. that lowers the miles per gallon and means we have to fill up our tanks more often and ethanol is very expensive because of the brought and the high price of corn. that would have an instantaneous effect without getting rid of the reserve and the security we need. also we could get more oil by approving the keystone pipeline which president obama did not agree to have come, even though that would be more construction and jobs. he could approve virginia's application to drill for oil off
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shore, alaska wants to drill. we could tap other sources of oil right here in the united states. >> that's a great point, it's an important point to make. that oil will now go to asia. >> there's two points about that, number one, i agree on the ethanol we could do that immediately and we should, that would have an immediate impact, keystone and virginia, those are long term and there would be no immediate effect on price. if we want to provide immediate relief, and part of the pressure is from speculation, part from the iran sanctions. the strategic petroleum reserve is a flexible tool the president can use, and i would take into account the immediate short term economic impact. >> congressman, how much of this is about politics that the president wants to get gas prices down ahead of the election? >> all of it. >> he would like to do that.
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there is a lot there is a 30 cent rise in the last month. >> but we're in the summer driving season, right? >> that's right, and the president is going to be watching this to see if we have the usual downturn in prices after labor day, so let's hope they do go down, but if they don't, should he use the tool? i think he should. >> congressman, if you're saying that the oil prices wouldn't have an immediate effect if but drilled off shore, it's also expectations. the expectations of future supply drive down the prices. >> it's a great point, they're all important points. we want our viewers to have as much info as possible about this issue and we provided it. thank you. >> we'll keep watching the spr and the price of oil. is this a classic case of do as i say, not as i do?
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paul ryan doesn't want to admit he took stimulus funds, and facing reality, facebook dropping to a record low again, it's half of the ipo price. is there a way to money money off of them. and we'll talk to the head of a dotcom maiming to become a huge threat to proctor and gamble. keep it right here for a leg up on the action. r line ♪ ♪ ♪ clap, pat, clap your hand ♪ pat it on your partner's hand ♪ ♪ right hand ♪ clap, pat, clap your hand ♪ cross it with your left arm ♪ pat your partner's left palm ♪ clap, pat, clap your hand, pat your partner's right palm ♪ [ male announcer ] it's back. the volkswagen beetle. that's the power of german enering.
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>> he's been one of president obama's biggest critics, but paul ryan now has explaining of his own to do. paul ryan in the past said that he did not lobby for any federal stimulus money to go to his district. a lot of members of congress rote a lot of letters in 2009 asking for those federal spending dollars to be spent back at home. ryan said he opposed the stimulus and he didn't do it, but a couple media organizations
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uncovered letters written by rune or somebody in ryan's office on his behalf to the departments of energy and labor requesting certain funds, and he admitted these letters went out. they questioned funds. >> he says they were treated as a constituent service request in the same way matters involving social security and veterans affairs are handled. they should have been handled differently and i take responsibility. this could be a finish because he made so much on the campaign trail about cutting federal spending and money that we don't have. that kind of rhetoric is at odds with letters he send, but congressional offices send lots and lots of these kinds of
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betters, so he is taking credit for correcting the record and takes responsible for questioning the money. >> okay, so will ryan's admission cost him? one or our guests says ryan has a problem, but sarah agreeing with what alan simpson says that everyone had to do it. thank you so much for joining us, sarah, how does paul ryan depend this? >> i think paul ryan, as answer to the question, maria, that was essentially, look. we messed up. he is taking full responsibility for it. i don't think there is any confusion about where he stands on these issues. he has been consistent throughout his long congressional ten year on spending and debt issues and he
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has a lot of credibility. i don't think people will judge him based on a cup the letters that his office wrote a couple years back. greg, is this a time to label him as a flip-flopper? >> my dad always said do as i say not as i do. and it wasn't just on postoffices or energy projects, he supported the george bush medicare prescription drug bent and a lot of other things that added to the deficit. when obama was elected he became a deficit hawk. it's pretty hypocritical and all of these politicians say cut spending but they get cold feet when it comes to their home districts. >> i don't think there is any cold feet on the part of paul
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ryan. he is the only person in washington willing to stand up and say yes, i'm willing to cut these programs because it's necessary for the long-term health of the country, it takes real political courage to do that knowing you have to face voters every two years. i admire him for the way he handled the issue. >> i admired john mccain who never got any earmarks for arizona. twice paul ryan rejected simpson-bowles. once as a commissioner and once on the floor of the house. you can talk tough about deficits, but words are just hot air, you have to do things. >> is it possible he didn't know what his staff was doing? >> he has been very consistent on opposing the bailouts and a lot of spending issues.
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it is fair, you know, that he -- maybe he should have known about it, but as eamon points out, these offices send thousands of letters. >> marie, he voted for tarp, he voted for tarp, the auto bailout. >> he voted for the house bill, not the president's bill. >> you're splitting hairs on that, he did vote for tarp if i'm not mistaken. >> he consistently opposed the stimulus spending, he opposed the auto bailouts. i think when you talk about these issues, voters understand one thing about paul ryan, and that is that he's willing to fight. they thaungs about him. i don't think the fact that a few letters went out the door from his office will suddenly change his whole credibility on
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this set of issues. >> i do think that he voted for the auto bailout. because you just said he didn't. >> he's been criticizing it. he pointed out they had four auto plants close in his district and these policies just don't work. but that sounds like john kerry, i voted for it before i voted against it. the conversion by ryan has come awfully recently. >> we'll watch this, so far it's unclear as far as what the impact on paul ryan will be from this, but certainly appreciate your insights, thank you so much. we'll see you soon greg and sarah, thank you. so what is this the 1950s? why do women feel less confident than men when it comes to managing finances? we're going to talk about this. another day, another low and facebook tumbles yet again. [ ma] when this hotel added aflac
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see why millions of people have already enrolled in the only medicare supplement insurance plans endorsed by aarp. don't wait. call now. welcome back, women are soaring, and as they become more bred winners, they are getting more financial responsibilities. a study shows they often lack the knowledge or confidence when it comes to talking about investing money. in this day and age, why is that?
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we have eleanor blainy who thinks it's time for women to step up, but terri savage is not buying the results of the study. a subject close to my heart, eleanor, you're calling on fwoim beef up their financial literacy. >> women love to talk but they need to talk to each other and their partners, kids, parents, so an advisor about managing their financing. they're underconfident, but i don't think they are undercapable. >> they have to get the fear out of the way. they have to know this is not brain surgery and just stop with the fear and just go at it. >> that's right, absolutely. >> terri, you don't even believe the study. >> i don't want to make that bet, but everybody is more anxious about finances. men are willing to drive miles
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and miles in the wrong direction, i think a survey like that showing that women are anxious and uncertain and want positive advice and i think that's positive. >> there is still a fair amount of women that turn their eye when it comes to financial issues and they would rather have their partner our spouse take care of the money situation. is it just fear? >> women have been put down a lot about money, but women have a very good instinct that statistics bear out. they know they will live longer than men. if you have a partner or you don't, you will end up alone. women don't want to become a bag lady, running out and being dependent on your family. the women that realize they can
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set chicken money aside, and invest wisely and diversify, they realize once that do it, it doesn't come with a guide book, you can start, make mistakes, and still come out ahead. >> you also have to trust yourself, women are the ceo of their household, they're the one spending on the groceries and what comes in the house and what money is allocated out. right from that moment, knowing you're the ceo of the household, you have the confidence and you're missing it. >> let's look away for a moment from the women to the advisors helping them. finance and investing in particular is a male dominated field. our vabulary is dominated by the language that men use to measure performance. it's all in terms of winning and losing basis points, and that's not necessarily the way women
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approach the matter of personal finance. it's a matter of balance and a matter of speaking to them about the things they really value. they are very good decision makers, but it takes them longer to come to a decision, and they need to be told been aadvisor they can trust. >> i know plenty of advisor that's are female and they are great and incredibly savvy. >> yes, it's a very successful business. we look past all of the successes we have in women, you have brokers and analyst on all the time, it's not a gender dominated thing, women just might not go out trumpeting how much they make for their clients, but there is a lot of great women brokers and financial firms are starting to recognize and respect them. >> we have a long way to go on
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that one. ladies, thank you, a great and important conversation, we'll see you soon. >> you know it's all about the trust and finding an advisor you trust and a fiduciary standard. >> or the trust in yourself. >> thanks, ladies, see you soon. turning problems into hot new products. keep it here because it could be the next big thing. three months after going public, shares of facebook have lost about half of it's value. we have ways you can profit from their tumble.
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>> welcome back. quirky.com uses an interesting business model that harn esss the power of the crowd. >> we make physical goods. >> it's anything but old school. product development meets the crowd. >> worker bees, crazy uncles, young kids. the best ideas in the world are locked in people's heads. >> a place to share ideas. >> what if we added on features to this ho allow people use it
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as their storage. >> reinventing dormroom milk crates. >> the community helps us in every step of the process. >> this can hold up to 300 pounds without deforming and this is the gateway into an entire stm. >> quirky's investors are cashing in. >> jake will be making probably 400,000 or $500,000 this year railroad the average quirky product is owned by 1,000 people. >> do you think you are a competitor with proctor & gamble? >> our model is most disruptive. >> they are scoring prime retail space at prime retailers. >> we have had a fortunate time.
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>> this is is a company that we want to be around 100 years from now. >> you can see more of my interview on the "wall street journal report" this weekend. facebook is falling further today to make for an all time low. the stock touched $19 a share which is half off of the ipo price. is it time to run? hide? buy? what activity are you seeing around facebook? >> option traders closing out positions. they were considering to role some of them.
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meaning that the investor wanted to see facebook get below 1765 in the next month or in the very short term to profit. >> there is really kidty issues with the stock. maybe a short term pop i would sell into that. facebook continues to go lower. so, a lot of problems for facebook. i think the stock trades lower and maybe headed to the $17 level. >> what a move. appreciate your insights on this. we will see you soon. be soon to tune into options
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>> welcome back. quick recap of the week on the quick market stat check. shelt rally. the dow jones industrial average climbing 67 points this week to the highest close since may 1. adding 12 points. and the technology filled nasdaq kpoz it up 56 points on the week due to, in part, by apple. apple closing at a record $648 and change. quite a bit. >> she is leaving us today for a new and exciting opportunity over at the tiffany network.
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it will also make the decision you would make. there is no value you can put. she has been my right hand in studio and in the field all over the world. working to get our viewers access to the top viewers of nations and companies. lulu has led for several years. she has corralled president clinton, spanish prescribe, uk prime minister and so many others. she took this show on the road and broadcast live from europe, asia and throughout the united states. we were live from st. pet petersburg, russia.
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the most timely interview when you want it is often times the toughest to get. she gets it. she also pushed me hard to be a better journalist and i will always be in her debt for that. her instincts are spot on. l urve lu, thank you so much for the moments of excellence we have shared. i understand it is time for you to fly higher. we all wish you only the best on your next endeavour. because we work together, i am better. you are a brilliant producer, a dear friend and i just want to say thank you. bye, lulu! [ applause ] i will see you next week.

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